BofA Completes More Than 12,000 Permanent HAMP Mods in a Month

According to Bank of America’s monthly Home Affordable Modification Program (HAMP) progress report to the Department of Treasury, the Charlotte, North Carolina-based bank has completed nearly 33,000 permanent HAMP modifications, including more than 12,000 since the previous monthly report.

As of April 8, 2010, 32,900 Bank of America customers had been placed into completed mortgage modifications with affordable payments under HAMP, up from 20,666 reported a month earlier. This marked the bank’s most productive month to date.

“We anticipated the momentum of completion of HAMP modifications would build as we entered spring, and we’re seeing that,” said Jack Schakett, loss mitigation strategies executive for Bank of America. “As more homeowners have completed their required trial payment period and provided the information necessary for underwriting, an increasing number of Bank of America customers are receiving long-term assistance through the government initiative and the efforts of our associates.”

In addition to its progress in HAMP, the bank has also stepped up its participation efforts in other facets of the government’s broad Making Home Affordable initiative. In January, Bank of America was the first servicer to sign an agreement to participate in the HAMP second lien modification program, and on April 1, the bank became the first major servicer to begin extending 2MP modification offers to homeowners with completed first lien modification under HAMP.

Bank of America also said it is currently implementing the Home Affordable Foreclosure Alternatives program to

streamline short sales for eligible homeowners who cannot complete a HAMP modification. In addition, the bank has refinanced more than 190,000 mortgages under the Home Affordable Refinance Program to benefit homeowners, including more than 100,000 loans with loan-to-value ratios exceeding 80 percent, which makes them difficult to finance outside of government-supported programs in today’s tight credit market.

While Making Home Affordable is at the center of Bank of America’s homeownership retention efforts today, the bank has completed another 535,000 modification outside of HAMP through proprietary programs since January 2008. And last month, Bank of America announced enhancements to its National Homeownership Retention Program unveiled in October 2008 to assist certain former customers of Countrywide who have types of loans that have proven to be at the greatest risk of default.

Excerpt taken from DS News written by Brittany Dunn

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